I also know that this 1031exchange is a 2-step process where you sale the property first and then you buy the new one.

Congrats on taking the next step!!

What method (Cash-out refinance, HELOC, or Sell), do you utilize to continue your investment strategy when you have equity.

@Cisco HoodI think the first step on whether or not to wait the year to avoid the taxes is to calculate what the taxes would be if you sold now.How much did you spend on renovations?

Step 1.

If the partners agree to specially allocate one item (for example, capital gains) 80/20 for economic purposes per SEE safe harbor, the corresponding tax amounts must also be allocated 80/20.However, IRS has a framework that can reallocate the partnership items based on the “ partner's interest in the partnership” if IRS determines the method of sharing the partnership items lacks the “Substantial Economic effect” (SEE) To meet the SEE, there are strict rules to maintain meaningful capital accounts including Deficit Makeup Requirement for those accounts.With the requirement, the partner must at some point contribute sufficient capital to eliminate the deficit, and the partner has the burden of the loss that partnership has and the allocation of the partnership will be respected by the IRS.This is a very high-level summary of the rules and is not comprehensive. there are many exceptions as well.Since the substantial economic effect, safe harbor allocation rules are complex and requires considerable additional recordkeeping, it's easier to follow PIP standard. 

Go to the City, they have a step by step outline on what to do.

I would not have accomplished the first steps without you all!

In the past people that I have worked with more or less ask for forgiveness, this is a risky step and would only advise with a good local architect and contractor willing because it also makes them look bad.

It is also great that you are using BP and other sources for learning and researching methods and techniques for investing in real estate; definitely keep that up.